Starbucks’ Reinvention Gets ‘Caffeine’ Boost, Looks to Reset IT Architecture

Liz Dominguez
Managing Editor
Liz
Starbucks

Starbucks is building on a reinvention plan introduced by founder Howard Schultz during Investor’s Day last September. 

The refreshed strategy, named “Triple Shot Reinvention With Two Pumps,” lays out a more clear, comprehensive roadmap, focusing on scaling digital capabilities, elevating experiences via store initiatives and product innovation, growing the brand globally, and incentivizing workforce loyalty. 

In order to build out long-term, sustainable growth, the company is strengthening its digital foothold, starting at the top by bolstering leadership to accelerate its digital flywheel. 

Tech Partnerships, Supply Chain Enhancements, and Loyalty Growth

Triple Shot Reinvention With Two Pumps

The Main Stage: Espresso

  • Elevating the brand
  • Strengthening and scaling digital
  • Becoming truly global

Add Two Pumps

  • Unlock efficiency
  • Reinvigorate the partner culture

As part of this strategy, Starbucks is partnering with key tech players to “reset its tech architecture,” introduce new capabilities, and upgrade existing offerings. 

For example, Starbucks has partnered with Microsoft to leverage gen AI capabilities within product development and personalization. It is working with Apple to launch a Green Apron Innovation store, where Starbucks can continue to experiment and refine its tech applications. It is also working with Amazon to reimagine its store experience by introducing Amazon One’s Just Walk Out tech. 

The company’s digitalization efforts will expand into its supply chain and store operations to introduce new efficiencies and elevate productivity with a focus on sustainability. 

[Also read: Starbucks Reinvention Plan Marries Digital and Physical Experiences With Web3 Loyalty]

Starbucks is also focusing on its Rewards program to develop deeper personalization and customization strategies. The goal is to double Starbucks Rewards with another 75 million members within the next five years, and continue expanding benefits, introducing more “Rewards Together” partnerships within the next six months.

Brady Brewer Quote

The company is also investing heavily in its store experiences, launching “better run, purpose defined stores” with concepts like pick-up, drive-thru only, double-sided drive-thru, and delivery-only. It will also be expanding its footprint, with the U.S. store count expected to reach more than 16,300 in FY24 (4% net new store growth) and 20,000 in the long term. 

Sara Trilling, executive vice president and president of Starbucks North America,” said the opportunity will help serve the evolving needs of Starbucks customers.

Laxman quote

Additional Growth Plans

  • Expand global store footprint to 55,000 by 2030 (8 new stores day, on average)
  • Focus on an omni-channel global strategy with big opportunities in China
  • Introduce new partner experience enhancements in the U.S.
  • Double hourly income versus FY20 for the U.S. workforce by end of FY25
  • Reinvest back into the company and deliver shareholder returns with a $3 billion-dollar efficiency program ($2 billion outside the store in cost of goods sold)

“Over the past five years, we have opened 9,000 stores – 7,000 of which were outside of the U.S.,” said Michael Conway, group president, International and Channel Development. “We will become truly global as we create the surround sound of omni-channel strategies in the 86 markets where we sell Starbucks Coffee.”

This article first appeared on the site of sister publication, CGT.

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